A seemingly absurd amount of 1.5%-2% properties in the area?
Hi BP, this is my first thread so be kind :).
My wife and I are just starting out in real estate investing, and have a decent amount of capital to throw right into it especially compared to real estate prices in the area.
It seems like one of the biggest challenges starting off is finding a good investment and making the right purchase. That being said, analyzing properties in my area including using BP's rental calculator and my county assessor's office, it seems like there are a ton of 1.5%+ properties based on list price on the MLS in my area that have sat for a long time anywhere from 120 days to 1.5+ years. I'm seeing list price of 115k with current active rent prices of $1,950, or list price of 80k with rent of $1,300 all based on the current state of repairs for these properties. I'm sure I could talk down the list price as well with their time on market.
When viewing these properties, what should we be looking at that would kill these deals? Seems like I must be missing something here... If these were really good deals, they wouldn't be sitting so long would they? It isn't like there's been a sudden price drop on them either that all of a sudden gives them decent numbers.
Could it be that the area is just flooded with good real estate investments and the REI's in the area don't have capital to snatch them all up, so the amazing ones go but the good ones sit?